Albertsons Companies (ACI) AI Stock Analysis

• Market Cap: $9.57B
• Dividend Yield: 3.44%
• Average Volume (3M): 8.73M
• Price to Earnings (P/E): 10.3
• Beta (1Y): 0.08
• Revenue Growth: 2.08%
• EPS Growth: -1.63%
• Country: US
• Employees: 108,300
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Grocery Stores
• EPS (TTM): 0.44
• Shares Outstanding: 549,307,560
• 10 Day Avg. Volume: 9,391,796
• 30 Day Avg. Volume: 8,728,455
• PEG Ratio: -0.47
• Price to Book (P/B): 3.52
• Price to Sales (P/S): 0.15
• P/FCF Ratio: 15.91
• Enterprise Value/Market Cap: 2.61
• Enterprise Value/Revenue: 0.31
• Enterprise Value/Gross Profit: 1.12
• Enterprise Value/Ebitda: 6.61
• 1Y Price Target: $23.58
• Price Target Upside: 35.28% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 64 Neutral
• Price Target: $18.50 ▲(6.14% Upside)

Albertsons Companies' overall stock score reflects a mix of strong financial performance and strategic initiatives, tempered by technical weakness and operational challenges. The company's robust revenue growth and strategic investments in digital platforms and share repurchases are positive, but high leverage and declining margins pose risks. Technical indicators suggest bearish momentum, which could impact short-term stock performance.

Positive Factors

E-commerce Growth

The significant growth in e-commerce reflects Albertsons' successful digital transformation efforts, enhancing its market position and customer reach.

Loyalty Program Expansion

Expanding loyalty program membership boosts customer engagement and retention, providing a competitive advantage and driving repeat sales.

Strategic Financial Management

The share repurchase reflects confidence in the company's valuation and enhances shareholder value, indicating strong financial management.

Negative Factors

High Leverage

High leverage poses financial risk, potentially limiting flexibility and increasing vulnerability to economic downturns.

Gross Margin Decline

Declining gross margins suggest cost pressures and operational inefficiencies, which could impact long-term profitability.

Store Closures

Store closures may indicate challenges in certain markets, potentially reducing physical presence and affecting revenue growth.

Albertsons Companies Business Overview & Revenue Model

Company Description

Albertsons Companies, Inc. (ACI) is one of the largest grocery store chains in the United States, operating under various banners including Albertsons, Safeway, Vons, Jewel-Osco, and more. The company is primarily engaged in the retail grocery sector, offering a wide range of products including fresh produce, meat, bakery items, dairy products, and household goods. In addition to groceries, Albertsons provides pharmacy services and operates fuel centers, enhancing its one-stop shopping experience for customers. With a focus on customer satisfaction and community engagement, Albertsons aims to deliver quality products and services across its numerous locations nationwide.

How the Company Makes Money

Albertsons Companies generates revenue primarily through the sale of groceries and related products in its supermarkets. The company's revenue model is based on both in-store sales and online grocery delivery services, which have seen significant growth in recent years. Key revenue streams include the sale of perishable goods, non-perishable items, and pharmacy products. Additionally, Albertsons benefits from its private label brands, which offer higher margins compared to national brands. The company also earns income through fuel sales at its gas stations and from various promotional partnerships with vendors and suppliers. Moreover, Albertsons has been investing in technology to enhance its e-commerce platform, which is expected to further boost sales and improve customer engagement.

Albertsons Companies Financial Statement Overview

Summary

Albertsons demonstrates steady revenue growth and sound cash generation capabilities despite facing profitability challenges. The balance sheet reflects high leverage but shows signs of stabilization. Continued focus on improving operational efficiency and managing debt levels will be crucial for sustaining growth and enhancing shareholder value.

Income Statement

Albertsons shows a stable revenue growth with recent TTM revenue at $81.01 billion compared to $80.39 billion in the previous year, indicating a modest growth trajectory. However, net income has slightly declined, resulting in a net profit margin decrease. The gross profit margin remains healthy, but the decline in EBIT and EBITDA margins suggests rising operational costs affecting profitability.

Balance Sheet

The company maintains a high debt-to-equity ratio, reflecting significant leverage at a level typical for the grocery industry. Despite this, the equity ratio shows slight improvement, indicating some strengthening of financial stability. Return on equity has decreased due to lower net income, signaling challenges in generating returns for shareholders.

Cash Flow

Albertsons maintains a positive free cash flow, though it has decreased compared to previous periods. The operating cash flow to net income ratio signifies efficient cash generation relative to net income. However, the declining free cash flow growth rate suggests potential pressures on future cash availability for investments and debt servicing.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	81.37B	80.39B	79.24B	77.65B	71.89B	69.69B
Gross Profit	22.24B	22.26B	22.05B	21.76B	20.72B	20.41B
EBITDA	3.78B	4.08B	4.53B	4.85B	4.87B	3.78B
Net Income	977.30M	958.60M	1.30B	1.51B	1.62B	850.20M
Balance Sheet
Total Assets	26.85B	29.31B	28.79B	28.75B	30.77B	29.39B
Cash, Cash Equivalents and Short-Term Investments	270.60M	339.20M	212.00M	477.20M	2.97B	1.78B
Total Debt	15.30B	14.18B	14.24B	15.01B	15.30B	16.07B
Total Liabilities	23.77B	25.92B	26.05B	27.14B	27.75B	28.06B
Stockholders Equity	3.08B	3.39B	2.75B	1.61B	3.02B	1.32B
Cash Flow
Free Cash Flow	944.50M	749.40M	628.20M	700.00M	1.91B	2.27B
Operating Cash Flow	2.87B	2.68B	2.66B	2.85B	3.51B	3.90B
Investing Cash Flow	-1.80B	-1.89B	-1.75B	-1.98B	-1.54B	-1.57B
Financing Cash Flow	-1.08B	-684.10M	-1.18B	-3.37B	-789.50M	-1.04B

Albertsons Companies Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 17.43
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ACI, the sentiment is Negative. The current price of 17.43 is below the 20-day moving average (MA) of 17.59, below the 50-day MA of 17.96, and below the 200-day MA of 19.71, indicating a bearish trend. The MACD of -0.14 indicates Negative momentum. The RSI at 45.61 is Neutral, neither overbought nor oversold. The STOCH value of 76.60 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ACI.

Albertsons Companies Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IMKTA	72 Outperform	$1.33B	16.29	5.29%	0.92%	-5.42%	-20.80%
SFM	69 Neutral	$7.95B	15.81	36.96%	―	16.60%	49.76%
WMK	67 Neutral	$1.66B	17.71	7.22%	2.02%	3.11%	6.54%
ACI	64 Neutral	$9.57B	10.31	32.04%	3.44%	2.08%	-1.63%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
KR	56 Neutral	$39.50B	57.16	7.75%	2.15%	-1.77%	-70.83%
GO	52 Neutral	$981.37M	-210.08	-0.37%	―	7.22%	-108.99%

Albertsons Companies Corporate Events

Albertsons Companies Appoints Scott Wille to Board

On November 12, 2025, Lisa Gray resigned from the Board of Directors of Albertsons Companies, Inc., with no disagreements cited between her and the company or its management. Scott Wille, Senior Managing Director of Cerberus Capital Management, was appointed to the Board following her resignation as per the Stockholders’ Agreement. Cerberus, a significant shareholder in Albertsons, manages approximately $66 billion in assets and has a substantial influence on the company’s board appointments.

Albertsons Companies Issues $1.5 Billion in Senior Notes

On November 10, 2025, Albertsons Companies, Inc. and its subsidiaries issued $1.5 billion in senior notes, with maturities set for 2031 and 2034. The proceeds from these notes are intended to refinance existing debt, repay part of its revolving credit borrowings, and cover related fees, potentially strengthening the company’s financial position and flexibility.

Albertsons Announces $750M Senior Notes Redemption Plan

On October 21, 2025, Albertsons Companies announced plans to redeem $750 million of senior notes due 2026, with the redemption expected on November 20, 2025. The company also revealed a new offering of $1,250 million in senior notes due 2031 and 2034, intending to use the proceeds to refinance existing debt, repay borrowings, and cover related expenses, with the offering expected to close around November 10, 2025.

Albertsons Announces $750M Share Buyback Agreement

On October 14, 2025, Albertsons Companies announced an accelerated share repurchase agreement with JPMorgan Chase Bank to buy back $750 million of its common stock, as part of a broader share repurchase program increased to $2.75 billion. This move, reflecting confidence in the company’s valuation and strategy, is expected to enhance shareholder value by repurchasing approximately 8% of its outstanding shares, with completion anticipated by the first quarter of 2026.

Albertsons Announces New Board Leadership Changes

On September 15, 2025, Albertsons Companies announced significant changes to its Board of Directors. James Donald retired as Chair of the Board, with Kim Fennebresque succeeding him. David Zinsner, Executive Vice President and CFO of Intel Corporation, joined the Board as an independent director, bringing extensive experience in finance and technology. The changes are expected to enhance the company’s strategic direction, particularly in digital transformation and innovation, aligning with its Customers for Life strategy.